Don't Pay for Mortgage Insurance Twice

In today’s market, every dollar of closing costs matters when you're looking to make a move. If you are currently selling your home to "level up" to a new property, there is a significant cost-saving tool you might be overlooking: Mortgage Insurance Portability.

The good news? You don’t have to leave your CMHC (or other default insurance) behind when you hand over your keys.

What is Mortgage Insurance Portability?

When you sell your current home, you can actually take your existing mortgage insurance with you to your next house. Instead of being hit with the cost of a brand-new insurance premium, you can simply transfer the existing one. This ensures you aren't paying for default insurance twice.

Are You Eligible?

You might be surprised to find out that this likely applies to you:

Original Down Payment: This tool is available to homeowners who bought their current home with a down payment between 5% and 20% and paid the initial insurance premium.

Current Equity: Even if your current home equity has grown well above 20%, your loan is still considered insured, and that insurance remains portable.

Why Porting is a Major Win

Porting your insurance isn't just about avoiding a double payment; it offers long-term financial benefits:

• Access to Lower Rates: By porting your insurance, your new loan remains "insured". This allows you to access lower mortgage rates that are typically unavailable for uninsured, higher-risk loans.

  
  

• Easy Upgrades: If you are moving into a more expensive home, the insurer doesn't charge a full new premium. Instead, they simply calculate a "top-up" amount based on the increased loan value.

  
  

• Reduced Closing Costs: This strategy helps you secure those lower interest rates without the heavy extra cost of a brand-new premium.

  
  

Ready to Level Up?

If high closing costs or interest rates have kept you on the fence about listing your home, this insurance portability could be the leverage you need to finally make your move.

How much of a difference would saving on those initial insurance premiums make for your moving budget?

I would be happy to run the numbers for you to see exactly how much you could save by porting your insurance. Let’s get you into your next home without the unnecessary extra costs!